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Operations Management Exam 4 MCQs Solution

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Question;Question 1Raw materials have value added by the operations. Mining, growing, refining, cleaning, packing and shipping add value.TrueFalse2.5 pointsQuestion 2Quality standards for components and subassemblies do not have to be clearly set by the materials manager for the producer.TrueFalse2.5 pointsQuestion 3Vertical integration is achieved by buying companies able to provide components that are otherwise purchased from suppliers.TrueFalse2.5 pointsQuestion 4DOI (days of inventory) is a measure that is equivalent to dividing total stock on-hand by the average demand per day.TrueFalse2.5 pointsQuestion 5In the business environment of the United States, personal relationships are not considered to be a reasonable basis for enterprise decisions. They exist nevertheless in less blatant forms than in other cultures.TrueFalse2.5 pointsQuestion 6Wal-Mart uses cross-docking to transfer goods from incoming trucks at the receiving dock to outgoing trucks at the shipping docks.TrueFalse2.5 pointsQuestion 7_____ are needed to evaluate and balance the disadvantages of having large amounts of stock on-hand (SOH) against the benefits of large order quantities placed long in advance of delivery so that substantial quantity discounts can be obtained.Life-cycle modelsTrade-off modelsOrder size modelsall of the above2.5 pointsQuestion 8The cost of materials is often less crucial than _____on-time delivery.project completion date.carrying costs.TQM.2.5 pointsQuestion 9Which function is part of the responsibilities of the materials control department?inspecting incoming materialsexpediting flowsarranging for and regulating shipmentsinternational accounts payable departmentall of the above2.5 pointsQuestion 10_____ has become a global system.Freshness datingEDI useOut-sourcingInvoicing2.5 pointsQuestion 11Failing to achieve high turnover rates can be caused bycarrying excessive inventories.overestimating demand.prices being too high for customers.smart competitive moves.all of the above2.5 pointsQuestion 12It is neither ethical nor legal for vendors to use bribes to influence purchasing decisions in _____Japan.Argentina.the U.S.A.Egypt.2.5 pointsQuestion 13The receiving facility is often called the _____, and another location for shipping is called a _____.shipping dock, receiving dockreceiving dock, shipping dockcross-docking block, dock-crossing blockreceiving distribution center, shipping floor2.5 pointsQuestion 14Cross-docking is the transfer of goods from _____incoming trucks at receiving docks to outgoing trucks at shipping docks.incoming trucks at receiving floors to forklift trucks on the shipping floors.incoming trucks at shipping docks to outgoing trucks at receiving docks.outgoing trucks at shipping docks to incoming trucks at receiving docks.2.5 pointsQuestion 15Bidding models show that as the number of bidders competing _____, the size of the winning bid decreases.decreaseschangesincreasesis unknown2.5 pointsQuestion 16_____ occurs when purchased components are further transformed by the company's production process.AcquisitionRaw MaterialValue AddingExtraction2.5 pointsQuestion 17Components (C) and sub-assemblies (SA) are purchased materials that have _____ value added than the raw materials of which they are made.lessgreatersamenone of the above2.5 pointsQuestion 18_____ means following up on orders and doing whatever can be done to move materials faster.Last-in first-outFirst-in first-outExpeditingWIP2.5 pointsQuestion 19The importance of the buying function depends upon the extent to which the company requiressuppliers.outside suppliers.raw materials suppliers.all of the above2.5 pointsQuestion 20Bullwhip effect refers toshortagesoverstockboth a. and b.safety stock2.5 pointsQuestion 21In a double sampling plan the two acceptance numbers are: c1 = 8 and c2 = 12. The number of defectives found in the first sample is 9. Therefore, a second sample is taken. What is the maximum number of defectives allowed in the second sample for the lot to be accepted?012345 pointsQuestion 22Twenty samples of n = 200 were taken by an operator at a workstation in a production process. The number of defective items in each sample was recorded as given in the following table. Management wants to develop a p-chart. The desired confidence level is 80.0 percent. What is the upper control limit?Sample Number of Defectives Sample Number of Defectives1 12 11 162 18 12 153 10 13 134 15 14 165 16 15 186 19 16 177 17 17 188 12 18 209 11 19 2110 14 20 22close to 0.08close to 0.019close to 1.28close 0.105close to 0.85 pointsQuestion 23Cans of soup are supposed to weigh exactly 16 oz. Inspectors want to develop process control charts. They take eight samples of five boxes and weigh them. They obtain the following data. What is the upper control limit for the x-bar chart?Sample Mean Range1 15.2 1.82 14.6 0.73 16.5 0.54 18.1 0.45 13.2 0.26 16.0 0.47 15.9 0.58 14.8 0.9close to 15.79close to 15.93close to 15.54close to 15.825 pointsQuestion 24Cans of soup are supposed to weigh exactly 16 oz. Inspectors want to develop process control charts. They take eight samples of five boxes and weigh them. They obtain the following data. What is the upper control limit for the R chart?Sample Mean Range1 15.2 1.82 14.6 0.73 16.5 0.54 18.1 0.45 13.2 0.26 16.0 0.47 15.9 0.58 14.8 0.9close to 1.42close to 0.78close to 1.12close to 0.825 pointsQuestion 25Cans of soup are supposed to weigh exactly 16 oz. Inspectors want to develop process control charts. They take eight samples of five boxes and weigh them. They obtain the following data. Is the process in a state of control?Sample Mean Range1 15.2 1.82 14.6 0.73 16.5 0.54 18.1 0.45 13.2 0.26 16.0 0.47 15.9 0.58 14.8 0.9yes (in control)no (not in control)5 pointsQuestion 26Eight samples of n = 50 were taken by an operator at a workstation in a production process. The number of defective items in each sample was recorded as follows. Is the process in a state of control? Assume z =3.Sample Number of Defectives1 102 03 124 85 106 167 148 10yes (in control)no (out of control)5 pointsQuestion 27Cholesterol Palace is a fast-food restaurant. Management was concerned with errors in filling orders at its drive-up window. It hired several undercover quality inspectors to randomly place 100 orders while the process seemed to be in control. The completed orders were then checked for accuracy. What is the average number of defects per order based on these data?Defect FrequencyIncomplete, shorter order 12Unordered items dispensed 2Wrong product dispensed 14Wrong toppings 14Wrong size drink 2Drink lid not sealed 17No drinking straw with soft drink order 0No napkins 18Far too many condiment packets 65No salt with sandwich or fries order 10Wrong change 3Other 12close to 1.69close to 169close to 0.59close to 2.005 pointsQuestion 28Cholesterol Palace is a fast-food restaurant. Management was concerned with errors in filling orders at its drive-up window. It hired several undercover quality inspectors to randomly place 100 orders while the process seemed to be in control. The completed orders were then checked for accuracy. What is the lower control limit for a c-chart. Use z =3.Defect FrequencyIncomplete, shorter order 12Unordered items dispensed 2Wrong product dispensed 14Wrong toppings 14Wrong size drink 2Drink lid not sealed 17No drinking straw with soft drink order 0No napkins 18Far too many condiment packets 65No salt with sandwich or fries order 10Wrong change 3Other 12close to -2.21close to 1.3close to 3.0zero (0)close to 1.695 pointsQuestion 29Cholesterol Palace is a fast-food restaurant. Management was concerned with errors in filling orders at its drive-up window. It hired several undercover quality inspectors to randomly place 100 orders while the process seemed to be in control. The completed orders were then checked for accuracy.Defect FrequencyIncomplete, shorter order 12Unordered items dispensed 2Wrong product dispensed 14Wrong toppings 14Wrong size drink 2Drink lid not sealed 17No drinking straw with soft drink order 0No napkins 18Far too many condiment packets 65No salt with sandwich or fries order 10Wrong change 3Other 12A quality inspector just used the drive-up window and now checks her order. Her cheeseburger has mustard on it although she ordered it without ketchup or mustard. Three handfuls of ketchup and mustard packets (far too many) are in the sack, but no napkins. And hot coffee has spilled because the lid wasn't properly sealed. Is the drive-up process in control?yes (in control)no (not in control)5 pointsQuestion 30In a single sampling plan the sample size n =5. The submitted lot has on an average 25% defective items. Three acceptance numbers (c = 0, c =1, and c=2) are being negotiated between the manufacturer and the buyer. Which acceptance number is most desirable from the manufacturer's viewpoint. You may use the following OC curve to find the answer.c = 0c = 1c = 2

 

Paper#46265 | Written in 18-Jul-2015

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